When looking to find temp workers, businesses must choose between 1099 independent contractors and W-2 employees. Knowing the differences between 1099 temp staffing and W-2 workers will help you know which option is better for your business. There are pros and cons to each general labor staffing option.
Both of these options are ideal for finding temp staff for my business. Temp labor is an important piece of any business's staffing strategy. Temps can be used in warehouse temp staffing as consistent additional support. Temp labor for hire can also be used in catering and events staffing to find temporary labor near me for project based events.
Understanding the Differences: 1099 vs. W-2 Workers
The key distinction between 1099 contractors and W-2 employees comes down to the employment classification and financial responsibilities. Though these differ, both are legal and viable options.
1099 Temp Staffing
1099 Temp Staffing or Independent contractors are considered self-employed. Workers that fall into this category include freelance workers and gig workers.
These workers are responsible for their own taxes. There are no payroll taxes or benefits required from the employer. Workers must track their earnings and expenses all on their own.
These workers have control over their schedules and job choices. Using this type of labor is ideal for temporary labor near me, warehouse temp staffing, and gig-based work.
1099 Temp Staffing (Independent Contractors):
- No payroll taxes or benefits required from the employer.
- Workers control their schedules and job choices.
- Ideal for temporary labor near me, warehouse temp staffing, and gig-based work.
W-2
With W-2 workers or employees employers must withhold payroll taxes and provide benefits. This option gets its name from the tax form that employers must provide for this type of worker.
This type of work is usually thought of as more stable but it comes with higher costs and more administrative responsibilities. This option is best for long-term and full-time positions rather than temp labor.
For example if a warehouse manager is looking to hire warehouse workers and they want to use W-2 workers they have to source, background check and hire the worker all internally. If they used a 1099 contractor they would simply have to post the shifts they need filled on the platform and workers would apply to work.
W-2 Workers:
- Employers must withhold payroll taxes, provide benefits, and follow labor laws.
- More stability but higher costs and administrative responsibilities.
- Best for long-term, full-time positions rather than temp labor for hire.
The Costs: What’s More Affordable for Your Business?
Many businesses assume hiring W-2 workers is the best choice, but 1099 temp staffing can provide significant cost savings.
With W-2 workers businesses pay the payroll taxes, benefits and all the administrative overhead costs. These costs include Social Security, Medicare, Healthcare, PTO, etc. For 1099 temp staffing the workers handle their own taxes and insurance.
This lighter burden on the business makes 1099 temp staffing the faster and more cost-effective option. For more information about what workers and businesses pay, research on the IRS website.
The Flexibility Factor: Which Option is More Scalable?
On-demand staffing platforms have made 1099 staffing more attractive by allowing businesses to scale their workforce quickly. Because 1099 temp workers can be sourced through a staffing app they provide a way for businesses to hire temp workers right when the demand increases. There is no long-term commitment with this type of staffing and so staff levels can be adjusted to real time needs. Making 1099 temp labor a perfect fit for warehouse temp staffing, general labor staffing, and events staffing.
W-2 employees require more advanced workforce planning. The flexibility of these is more limited and there are higher costs when scaling up for seasonal or project based work. This is not ideal for businesses needing immediate and flexible temp workers.
Bacon is the Best Choice for 1099 Temp Staffing
On-demand staffing platforms like Bacon make it easy to find warehouse workers, temp labor and general labor staffing quickly. Bacon is fast, cost-effective, flexible and high quality.
Bacon gives businesses instant connection to hire temp workers. Businesses post a shift on the staffing app and workers apply directly to the shift.
Bacon has a set markup fee of 40% on the worker wage that is set by the businesses. This transparent and low cost makes it possible to create a cost-effective staffing strategy. Since Bacon Workers are 1099 contractors businesses don’t need to worry about payroll taxes, benefits, or HR costs.
The flexibility and quality of the Bacon platform makes it easy for managers and businesses to match their temp staffing to their unique business needs. Bacon Workers are pre-background checked and have a Bacon Score to represent their work ethic.
Conclusion
1099 temp staffing provides cost savings, workforce flexibility, and faster hiring compared to traditional W-2 employees. These benefits are especially noticeable when using an on-demand staffing app like Bacon. Businesses that need to hire temp workers should explore staffing apps for a better staffing solution.
